Housing market cools
The latest stats from REINZ show that house prices cooled in December.
Tuesday, January 21st 2003, 9:33PM
by Jenny Ruth
The housing market eased back in December from November’s high level of sales but there were still a record number of transactions for the month of December.
The latest Real Estate Institute figures show that 7,766 homes worth $1.84 billion were sold in December compared with the 9,932 homes worth $2.39 in November.
The national median house price also slipped from November’s record $195,000 to $192,000, although that was still 7.9% up on the $178,000 median price in December 2001.
Institute president Graeme Woodley attributes the market’s robustness to continuing confidence in the domestic economy and mortgage rate stability.
The Reserve Bank’s Official Cash Rate, from which floating mortgage rates are set, has stood at 5.75% since July last year and economists don’t expect it will change before June this year.
Woodley notes that housing activity usually falls in December because of the Christmas/New Year holidays.
Compared with November, the median price rose in five of the country’s 11 regions with Hawkes Bay chalking up the biggest increase from $140,000 to $156,250. The median price remained the same in two of the regions and fell in four, most notably in Auckland where it dropped from $280,000 TO $267,500. Auckland’s median price was still up on the $253,800 recorded in December last year.
Compared with December last year, the median price rose in all regions but Manawatu/Wanganui where it fell from $110,000 to $102,000.
| « Half chance of rate cut in June | House buying interest strong » |
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